UNIVERSITY OF FLORIDA 

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3 1262 08482 9885 

Registry No. 299-1-08 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

QUILTING MANUFACTURERS 

INDUSTRY 

AS SUBMITTED ON AUGUST 31, 1933 

/ ( 

The Code for the Quilting Manufacturers Industry 

in its IM"esent form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

UNITED STATES 

GOVERNMENT PRINTING OFI<'ICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - • - - - Price 5 cents 
SUBMITTED BY 

QUILT! G MANUFACTURERS INSTl'l'UTE 

( II) 
PROPOSED CODE OF FAIR COMPETITION OF QUILTING 

MANUFACTURERS INSTITUTE 

PURPOSE 

The Quilting Manufacturers Institute recognizes the existence of 

an emergency affecting the welfare of both employees and employers 

in the quilting industry. The emergency demands that unfair com• 

petitive practices be eliminated; that unemployment be reduced and 

relieved; and that standards of labor be improved. It is the declared 

purpose of the Quilting Industry and adherents to this Code to bring, 

insofar as may be practicable, the rates of wages paid within the 

Quilting Industry to such levels as are necessary for the creation and 

maintenance of the highest practicable standard of living; to restore 

the income of enterprises within the industry to levels which will 

make possible the payment of such wages and avoid further depletion 

and destruction of capital assets; and from time to time to revise 

the rates of wages in such manner as will currently reflect an 

equitable adjustment to variation in the cost of living. 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a code of 

fair competition for the quilting industry. 

DEFINITIONS 

A. The term "quilting" and "quilting products " as used herein 

is defined to n1ean : 

( 1) Quilted goods, including a piece of material, cotton, silk, satin, 

or other textile fabric which has been quilted to the later made into 

a finished product by some other industry. 

(a) Quilted lining or interlining of any character, whether the 

substance be wool or cotton, used in connection with cotton, silk, 

rayon, or other textile material. 

(3) Any material such as cotton silk, rayon, or similar textile 

material, which is processed by sewing through a quilting machine 

with some sort of filling material, and then produced into the finished product, such as, for example, quilted bed-pad or quilted bedspread. 

( 4) Any material stitched together on a quilting machine either 

with or without filling and later to be used by the garment or other 

industries. 

B. The term "employees" as used herein shall include all persons 

employed in the conduct of such operations. 

C. The term "productive machinery" as used herein is defined to 

mean" quilting machines." 

D. The term "effective date" as used herein is defined to be 

August 1, 1933, or, if this Code shall not have been approved by che 

9968-33 (1) 
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President two weeks pr10r thereto. then the second Monday after 

such approval. 

E. The term" person cs" shall include natural persons, partnerships, 

associations, and corporations. 

PROVISIONS PURsu ANT TO SECTION 7 (a) 

Employers in the quilting industry shall comply with the following 

requirements 0£ Section 7 (a) of Title I of the National Industrial 

Recovery Act: 

" ( 1) That employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or in 

self-organization, or in other concerted activities for the purpose of 

collective bargaining, or other mutual aid or protection; (2) that 

no employee and no one seeking employment shall be required as a 

condition of employment to join any company union or to refrain 

from joining, organizing, or as isting a labor organization of his 

own choosing; and (3) that employers shall comply with the maximum hours of labor, minimum rates of pay, and other conditions of 

employment, approved or prescribed by the President." 

MINIMUM RATES OF w AGES 

On and after the effective date, the wages that shall be paid by 

any employer to any employee North of the Mason and Dixon line 

shall be at not less than the rate of 371⁄2¢ per hour for male employees 

a.nd 321⁄2¢ per hour for female employees, or at the rates of $15 and 

$13, respectively, per week for 40 hours of labor. 

On and after the effective date, the wages that shall be paid by 

any employer to any employee South of the Mason and Dixon line 

shall be at not less than the rate of 35¢ per hour for male employees 

and 30¢ per hour for female employees, or at the rates of $14 and 

$12, respectively, per week for 40 hours of labor. 

Overtime pay after forty hours and up to the maximum of fortyeight hours shall be at the rate of time and a quarter. 

MAXIMUM HouRs OF LABOR AND MACHINERY 

On and after the effective date, employers in the quilting industry shall not operate on a schedule of hours of labor for their 

employees in excess of forty-eight hours per week and they shall 

not operate productive machinery in the quilting industry :for more 

than two shifts of forty hours each per week. 

On and after the effective date employers in the quilting industry 

shall not employ any minor under the age of sixteen years. 

That this Code is not designed to promote monopolies or oppress 

small enterprises and shall not operate to discriminate against them 

and shall tend to effectuate the policy of the National Industrial 

Recovery Act. 
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REPORTS 

With a view to keeping the President informeJ as to the observance or nonobservance of this Code of Fair Competition and as to 

whether the quilting industry is taking appropriate steps to effectuate the declared policy of the National Industrial Recovery Act, 

each person engaged in the quilting industry shall furnish duly 

certified reports to the Association in substance as follows and in 

such form as may hereafter be provided : 

A. Wages and hours of labor: Returns every four weeks showing 

actual hours worked by the variom; occupational groups of employees, and minimum weekly rates of wages. B. Machinery Data: Returns every four weeks showing number 

of quilting machines operating each week, the number of shifts, and 

the total number of machine-hours each week. 

C. Reports of production, sales, stocks, and orders: Quarterly reports showing production in terms of the commonly used unit, that 

is, quilting; stocks on hand both sold and unsold stated in the same 

terms. 

The Quilting Manufacturers Institute is constituted the agency to 

collect and receive such reports under such conditions as will insure 

that their contents will not be improperly divulged. 

To further effectuate the policies of the National Industrial Recovery Act, the Quilting Manufacturers Institute is set up to cooperate with the Administrator as a planning and fair practice 

agency for the quilting industry. 

Such agency may from time to time present to the Administrator 

recommendations based on conditions in the industry as they may 

develop from time to time, which will tend to effectuate the operation of the provisions of this Code and the policy of the National 

Industrial Recovery Act, and in particular along the following lines: 

A. Recommendations as to the requirements by the Administrator 

of such further reports from persons engaged in the quilting industry of statistical information and keeping of uniform accounts, 

as may be required to secure the proper nbservance of the Code and 

promote the proper balancing of production and consumption and 

the stabilization of the industry and employment. 

B. Recommendations for the setting up of a service bureau for 

manufacturing, accounting, credit, and other purposes to aid the 

various plants in meeting the conditions of the emergency and the 

requirements of this Code. 

C. Recommendations for changes in, or exemptions from, the 

provisions of this Code as to the working hours of n1achinery, which 

will tend to preserve a balance of productive activity with consurn.ption requirements, so that the interests of the industry and the 

public may be properly served. 

D. Recommendations for the making of requirements by the Administrator as to practices by persons engaged in the quilting industry as to methods and conditions of trading, the naming and 

reporting of prices which may be appropriate to avoid discrimination, to promote the stabilization of the industry, and to prevent 

and eliminate unfair and destructive competitive prices and 

practices. 
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E. Recommendations for regulating the disposal of distress merchandi e in a way to secure the protection of the owners and to promote ound and stable conditions in the industry. 

F. Recommendations as to the making available credit information concerning cu tomers or prospective customers to those engaged 

in the industry, of information regarding terms of and actual functioning of, any or all of the provisions of the Code, the conditions 

of the industry, and regarding the operations of any and all of the 

members of the industry covered by such Code, to the end that during the period of emergency available credit niay be adapted to the 

needs of such industry considered as a whole and to the needs of the 

small as well as the large units. 

G. Recommendations for dealing with any inequalities that may 

otherwise arise to endanger the stability of the industry and of production and employment. 

Such recommendations, when approved by the Administrator, 

shall have the same force and effect as any other provisions of this 

Code. 

UNFAIR METHODS OF CoMPETITION 

Violation by any manufacturer of quilting of any provision or 

provisions of this Code, or of any approved rule issued thereunder, 

is an unfair method of competition. The following are specifically 

declared to be unfair methods of competition: 

A. Selling or offering for sale any merchandise below cost. 

B. Enticing away employees of competitors with the purpose and 

effect of unduly hampering, injuring, or embarrassing competitors 

in their businesse . C. Making, cau ing, or permitting to be made or published, any 

false or deceptive statements on, or concerning the business policies 

or methods of a competitor. 

D. Selling or offering for sale of any product of the industry with 

misrepresentation calculated to deceive customers or prospective 

customers as to the quality, quantity, gTade, substance, nature, origin, 

size, or preparation of any products of the industry. 

E. The shipping of goods on consignment or memorandum, or 

approval, either directly or indirectly. This paragraph shall not 

apply to samples. A sample is defined as being one only of each 

style and quality. 

F. The attempt to secure lists of a competitor's custo1ner . 

G. Paying or allowing secret rebates, refunds, credits, or unearned discounts, whether in form of promotion fees, advertising 

allowances or appropriations, moRey or otherwise, or extending to 

certain purchasers confidential prices, special service, or privileges 

not specifically mentioned in his original specifications. 

H. Substituting other materials or o-rades for the kind ordered 

without written approval of the purchaser. 

I. The sale of any product or any article whatsoever other than 

quilting at an unreasonable price, for the purpose of evading or 

flefeating the terms of thi Code. 

J. To represent certain prices and terms as " pecial" when the.y 

are in fact regular prices and regular terms, with the tendency and 

capacity to mislead and decei, e purchasers. 
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K. The secret deviation fro1n announced or published price lists 

directly or indirectly in any guise by the allowance of r ebates, 

refunds, commissions, or discounts, undeserved freight allowances, 

etc. 

L. Pavincr or promising to pay to any einployee or agent of the 

purchaser, ~r prospective purcha er, a commission in the form of 

money or anything of value, f or the purpo e of inducing or compensating for a ale with or :Vithout th~ knowledge of_ the _purchaser. 

M:. Postdating or predating quotat10ns, orders, 1nvo1ces, tatements, or other sales document . N. Terms of sale of quilted products shall be 3 % 10 days E .0.M. 

from date of shipment with no extra dating; and these t erms shall 

not be deviated from. 

0. Each firm shall publish price lists of all st andard items n1.anufactured or processed by quilting machinery. P. The performance of work or labor for retail tores or jobber is 

prohibited. 

CosTs 

The industry shall proceed at once to provide for standard. 

methods of costing which shall be used by all manufacturers. 

The term " cost " in the opinion of the industry should be interpreted to include among other items, cost of raw materials, labor, 

transportation, manufacturing, depreciation, depletion, obsolescence, 

insurance, interest on investment, selling, and administration 

expenses. 

Such of the provisions of this Code as are not required to be 

included therein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated if it appears 

that the public needs are not being served thereby and as changes 

in circumstances or experience may indicate. They shall remain 

in effect unless and until so modified or eliminated or until the expiration of the act. It is contemplated that from time to time supplementary provisions to this Code or additional codes will be submitted 

for the approval of the President to prevent unfair competition in 

price and other unfair purposes and policies of Title I of the 

National Industrial Recovery Act and which shall not conflict 

with the provisions thereof. 

An appropriate committ ee is hereby cr eated and empowered to 

investigate as to the functioning and observa nce of any of the provisions of this Code, at its own instance or on complaint by any 

person affect ed, and to r eport the same to the A dministrator; to cooperate with the Administrator ; to propose additions, modifications, 

or r evisions of thi Code ; from time to time to require such reports 

from manufacturers as in its judgment may be necessary to advise 

it adequately of the administration and enforcement of the provisions 

of this Code; to propose a marketing code with provisions with respect to (a) collection and interchange of credit information, (b) 

cooperative administration of insolvent debtors, and ( c) other aspects of marketing; and generally to perform such other acts as may 

be reasonably necessary and proper to put these resolutions into 

effect and accomplish the objects and purposes of the National Industrial Recovery Act. In the event such committee shall find the 
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rules of fair competition, or any provisions of this Code, ·have been 

violated, the violation shall be reported to the Board of Directors 

for such action as they deem proper in accordance with this Code, 

including in appropriate cases, report to the United States Attorney, 

the Federal Trade Commission, or the recommendation that appropriate proceedings be taken in accordance with the National 

Industrial Recovery Act. 

Such co.mmittee is also set up for the purpo e of investigating and 

informing the Administrator, on behalf of the quilting industry, as 

to the importation of compe.titive articles into the United States in 

substantial quantities or increasing ratio to domestic production on 

such terms or under such conditions as to render ineffective or seriously to endanger the maintenance of this Code and as an agency for 

making complaint to the President on behalf of the quilting industry, 

under the provisions of the National Industrial Recovery Act, with 

respect thereto. 

ADJUSTMENT OF CONTRACTS 

Where the costs of executing contracts entered into in the quilting 

industry prior to the presentation to Congre s of the National Industrial Recovery Act are increased by the application of the provisions 

of that Act to the industry, it is equitable and promotive of the 

purposes of the Act that appropriate adjustments of such contracts to 

reflect such increased costs be arrived at by arbitral proceedings or 

otherwise, and the Quilting Manufacturers Institute is constituted 

an agency to assist in effecting such adjustments. 

PARTICIPATION 

Participation in any subsequent revision of, or addition to, this 

Code, shall be extended to any person, partnership, or corporation 

in the quilting industry who accepts his share of the cost and responsibility, as well as the benefit of such participation by becoming 

a member of the Quilting Manufacturers Institute. 

The industry approves the practice of handling disputes in a fair 

and reasonable manner, coupled with a spirit of moderation and good 

will, and every effort should be made by the disputants themselves 

to arrive at an agreement. If unable to do so, they should agree, if 

possible, upon arbitration under some one of the prevailing codes. 

The President, in accordance with the provision of Clause 10 (b) 

of the National Industrial Recovery Act, may, from time to time, 

cancel or modify any order, approval, license, rule, or regulation 

issued under Title I of the National Industrial Recovery Act. 

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